How are auto insurance ratings established?

Most of us have been with the same insurance company for years and years, even though our insurance bill keeps increasing every six months. Have you ever wondered why, as a valued customer, a company would continue to raise their prices for seemingly no reason? Well, the reason is that they know it’s too much trouble for you to change companies, so they might as well suck you in while they have you.

So instead of sitting around while you get ripped off, now is the time to get a new quote on your auto insurance. If you don’t know how auto insurance ratings work, you should think of them as a very complex equation involving almost every aspect of your past, your life, and your family.

Car insurance ratings take into account the most basic factors, like your driving record and the number of miles you drive, but also the type of car. This is where a lot of people get into trouble. You don’t have to drive a race car for it to be expensive to insure. In fact, many of the most expensive cars to insure are cheap to buy. So before you buy your next car, check with several insurance companies and get a quote on the cars you’re looking at.

Auto insurance ratings also take into account your credit score, your overall credit history, your level of education, what you do for a living, and where you live. Where you keep your car is important, as is how many people have access to drive it. Knowing all of these factors can help you understand why you may be paying more for your insurance than someone else, and also help you understand that you need to buy a new policy now.